“The second quarter was productive on multiple fronts for AVEO,
including clinical updates, regulatory guidance and another partnership
for tivozanib, in addition to completion of our corporate streamlining
efforts,” said Michael Bailey, president and chief executive officer.
“These accomplishments have positioned us well to continue pursuing
several additional value creating initiatives for tivozanib, including a
potential confirmatory clinical and regulatory path forward for renal
cell cancer in the US, as well as a potential marketing authorization
application for renal cell cancer in Europe. We remain focused on
executing against these goals as we continue to evaluate additional
portfolio partnerships and further tivozanib development in colorectal
cancer, throughout the balance of the year.”

Recent Highlights

Announces Exclusive Licensing Agreement with Pharmstandard for
Tivozanib in Russia, Ukraine and CIS. In August, AVEO announced
that it has entered into an exclusive license agreement with a
subsidiary of Pharmstandard Group for the development, manufacturing
and commercialization of tivozanib in the territories of Russia,
Ukraine and the Commonwealth of Independent States, for all
indications excluding non-oncology ocular conditions. Under the terms
of the agreement, Pharmstandard is obligated to pay AVEO an upfront
payment of $1.5 million. AVEO is also eligible to receive up to $7.5
million in connection with the first marketing authorization of
tivozanib in Russia, $3.0 million for each additional approved
indication thereafter and a high single-digit royalty on net sales in
the above mentioned territories. Pharmstandard will be responsible for
all activities and costs associated with the further development,
regulatory filings, health services and commercialization of tivozanib
in the specified territories. A percentage of all upfront, milestone
and royalty payments received by AVEO are due to Kyowa Hakko Kirin as
a sublicensing fee.

Received European Regulatory Guidance Regarding Potential Marketing
Authorization Application for Tivozanib in RCC—In June, AVEO
announced that, following pre-submission advisory meetings to discuss
the potential submission of a Marketing Authorization Application
(MAA) for tivozanib as a treatment for Renal Cell Carcinoma (RCC) in
Europe, it had received written guidance from the Rapporteur and
co-Rapporteur appointed by the Committee for Medicinal Products for
Human Use for the filing of such an application. The application would
be based on the Company’s existing dataset, which includes results
from the Phase 3 TIVO-1 study of tivozanib in the first-line treatment
of RCC in which tivozanib demonstrated a significant improvement over
sorafenib in the study’s primary endpoint of progression free
survival. The Company is evaluating partnership opportunities to take
tivozanib forward in Europe as it continues to prepare for an MAA
filing.

Presented Final Results of Extension Study 902 of Tivozanib in RCC—At
the 2015 American Society of Clinical Oncology (ASCO) Annual Meeting
in June, AVEO presented final results from its TIVO-1 extension study,
known as Study 902, in which patients with advanced RCC received
tivozanib as second-line treatment subsequent to disease progression
on sorafenib in the Company’s Phase 3 TIVO-1 first-line RCC study. The
results were presented in a poster presentation titled “Tivozanib vs
sorafenib targeted therapy for advanced renal cell carcinoma: Final
results of a phase III trial (901) and efficacy results of a 2nd line
tivozanib extension study (902).”

Received FDA Regulatory Guidance Regarding Proposed Phase 3 RCC
Study—In May, AVEO announced it had received a written response
from the FDA stating that a Phase 3 study outlined by the Company, in
patients with RCC who have failed at least two prior regimens,
including VEGF therapy, “may support AVEO’s proposed indication for
tivozanib in the 3rd line setting.” In response to whether the study,
together with the TIVO-1 study, would be sufficient to also support
licensure of tivozanib as a treatment for advanced [first line] RCC,
the FDA indicated: “whether the results from this [third line] study
can support AVEO’s proposal for tivozanib in the first line setting is
a review issue.” The Company continues to evaluate all options,
including partnerships, for the clinical and regulatory advancement
for tivozanib in RCC.

Received FDA Feedback for Tivozanib in CRC—In June, AVEO
announced that it had received feedback from the U.S. Food and Drug
Administration (FDA) regarding a potential pivotal study for tivozanib
in the treatment of NRP-1 low (below the median, representing 50% of
the population) CRC. This feedback is consistent with the Company’s
current clinical strategy and discussions with cancer research
cooperative groups. As such, AVEO plans to identify a commercially
viable assay which will enable a prospectively defined, randomized
Phase 2 study.

Relocated Corporate Headquarters—In May, AVEO announced the
relocation of its corporate headquarters to One Broadway in Cambridge,
Massachusetts. Consistent with the Company’s goal of streamlining
operations to align with its strategic needs going forward, the new
facility consists of approximately 5,000 square feet of office space
under flexible lease terms, with no laboratory or vivarium space.

Total collaboration revenue was approximately $0.1 million compared
with $1.8 million for Q2 2014. The decrease was primarily due to an
additional $1.8 million in revenue recognized in connection with our
agreement with Astellas, which concluded in August 2014.

Research and development (R&D) expense was $1.8 million compared with
$9.3 million for Q2 2014. The decrease in R&D expense was primarily
due to a reduction in personnel-related expenses following our January
2015 strategic restructuring, the reduction of our leased facilities,
as well as a decrease in external clinical trial and consulting costs
associated with the decreased tivozanib clinical development activity
and AV-380 preclinical development activity.

General and administrative (G&A) expense was $2.9 million compared
with $4.8 million for Q2 2014. The decrease in G&A expense was
primarily due to a reduction in external legal costs associated with
various ongoing legal matters and a decrease in employee compensation,
facilities and IT costs following our January 2015 restructuring and
the reduction of our leased facilities.

Restructuring and lease exit expense was $25,000 compared with $5.2
million for Q2 2014. The expense incurred during Q2 2015 related to
accretion expense associated with the lease termination liability for
the 650 E. Kendall Street facility, whereas the expense incurred
during Q2 2014 related to the portion of the 650 E. Kendall Street
facility that we ceased using during that quarter.

Net loss for Q2 2015 was $5.5 million, or a loss of $0.10 per basic
and diluted net loss per share compared with net loss of $18.0 million
or a loss of $0.35 per basic and diluted net loss per share for Q2
2014.

Financial Guidance

We believe that our cash resources will allow us to fund our current
operations at least through the third quarter of 2016. This estimate
does not include our payment of potential licensing milestones or the
costs of conducting any contemplated clinical trials and assumes no
milestone payments from our partners, additional funding from new
partnership agreements, equity financings, debt financings or
accelerated repayment thereof or further sales under our ATM. The timing
and nature of activities contemplated for 2015 and 2016 will be
conducted subject to the availability of sufficient financial resources.

Today’s Conference Call Information

AVEO will host a conference call today, August 10, at 10:00 am (ET). The
call can be accessed by dialing 1-866-428-2694 (domestic) or
1-704-908-0403 (international) five minutes prior to the start time and
providing the passcode 98837289. A live webcast of the conference call
can be accessed by visiting the investors section of the AVEO website at www.aveooncology.com.
A replay of the webcast will be archived on the AVEO website for two
weeks following the call.

About AVEO

AVEO Oncology (AVEO) is a biopharmaceutical company committed to
developing targeted therapies through biomarker-driven insights to
provide improvements in patient outcomes where significant unmet medical
needs exist. AVEO’s proprietary Human Response Platform™ has delivered
unique insights into cancer and related disease biology that AVEO is
seeking to leverage in the clinical development strategy of its
therapeutic candidates. For more information, please visit the company’s
website at www.aveooncology.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements of AVEO within
the meaning of The Private Securities Litigation Reform Act of 1995 that
involve substantial risks and uncertainties. All statements, other than
statements of historical facts, contained in this press release are
forward-looking statements. The words “anticipate,” “expect,” “intend,”
“may,” “plan,” “could,” “should,” “seek,” or the negative of these terms
or other similar expressions, are intended to identify forward-looking
statements, although not all forward-looking statements contain these
identifying words. These forward looking statements include among others
statements about AVEO's clinical development plans for tivozanib in CRC,
its plans to evaluate partnership opportunities, and its evaluation of
the development of tivozanib in RCC. Actual results or events could
differ materially from the plans, intentions and expectations disclosed
in the forward-looking statements that AVEO makes due to a number of
important factors, including risks relating to: AVEO’s ability to
maintain its partnership agreements, AVEO’s ability, and the ability of
any licensees, to demonstrate to applicable regulatory agencies the
safety, efficacy and clinically meaningful benefit of its product
candidates; AVEO’s ability to successfully implement its strategic
plans; AVEO’s ability to successfully enroll and complete clinical
trials of its product candidates; AVEO’s ability to achieve and maintain
compliance with all regulatory requirements applicable to its product
candidates; AVEO’s ability to obtain and maintain adequate protection
for intellectual property rights relating to its product candidates and
technologies; developments and expenses related to AVEO’s ongoing
shareholder litigation and SEC inquiry; AVEO’s ability to raise the
substantial additional funds required to achieve its goals; unplanned
capital requirements; adverse general economic and industry conditions;
competitive factors; and those risks discussed in the section titled
“Risk Factors” in AVEO’s most recent Annual Report on Form 10-K, its
quarterly reports on Form 10-Q and its other filings with the SEC. The
forward-looking statements in this press release represent AVEO’s views
as of the date of this press release. AVEO anticipates that subsequent
events and developments may cause its views to change. While AVEO may
elect to update these forward-looking statements at some point in the
future, it specifically disclaims any obligation to do so. You should,
therefore, not rely on these forward-looking statements as representing
AVEO’s views as of any date other than the date of this press release.